Moody's ups GM notes, rates loans Baa2

Moody's Investors Service said it upgraded the senior unsecured notes of General Motors Co. to Baa2 from Baa3 and assigned a Baa2 rating to GM's new senior unsecured credit facilities with $14.1 billion of availability.

“The upgrade of the senior unsecured notes to Baa2 reflects the removal of a springing guarantee in the terms and conditions of GM's new senior unsecured credit facilities. There is no change in Moody's fundamental view of GM's credit profile. Following the removal of the springing guarantee, there is no longer a difference in priority of claims between the senior unsecured notes and the senior unsecured credit facilities. The obligations under GM's previous credit facilities would have been guaranteed by certain domestic subsidiaries in the event at least two rating agencies had downgraded GM to below investment grade,” the agency said in a statement.

The outlook is stable.

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